What is a Surety Bond?

Posted under Construction Zone Insurance by Contractors Online School on Wednesday 19 September 2012 at 10:29 pm

A Surety Bond is a contract among 3 parties: 1) Obligee: party who is the recipient of an obligation. 2) Principal: party who will be performing his/her obligation. 3) Surety: assures the Obligee that the Principal can perform the job.

A California contractor bond is $12,500 and a contractor has to have a bond in place to have his/her contractor license current and active.